In a report completed two weeks ago, the inspector general alleged Taxation and Finance employees Esther Rockenstire, Fredrick Ramundo, Steve Graham and Lisa Maynard and Department of Labor employee Robert Disser bought the illegal substances from Gerry McNamara. The report also said that Rockenstire consumed cocaine in a restroom at work.

The allegations of drug sales emerged from an investigation by Taxation and Finance's labor relations office into Internet abuse that uncovered e-mails cryptically referring to transactions of "cheese."

"I don't have extra cheese on me that I would need but I would love some crackers," reads an e-mail from Rockenstire to McNamara. "You let me know ... you know I'm good for it anyhow."

McNamara was questioned, and a subsequent search of his desk uncovered a small bag of a white powdery substance that resembled cocaine. McNamara was placed on administrative leave, and soon after resigned.

The agency informed the inspector general and the State Police of its findings.

While three of the workers admitted to buying the drugs, Graham and Maynard did not -- despite the discovery of e-mails using the same sort of "veiled and coded language reminiscent of McNamara's communications with his other drug clients," according to the report.

"Although Graham and Maynard claimed that these e-mail messages amounted to gibberish or nonsense devoid of meaning, the cryptic language utilized coupled with the inability of Graham and Maynard to provide any legitimate subject of these communications further supports McNamara's admissions," said the report.

McNamara's departure from state service precludes his being disciplined by Taxation and Finance; the inspector general recommended that the agencies involved should sanction the other workers. The inspector general's findings were also referred to Albany County District Attorney David Soares.

Taxation and Finance refused to comment on the affair, citing the ongoing investigation. Leo Rosales, spokesman for the Department of Labor, said that the agency was "actively and aggressively pursuing disciplinary action" against its employee, Robert Disser, who nonetheless remains on the job.